Mark Tuesday, July 01, 2008

Development

City Council Votes Unanimously to Give Greg Hatem Extension on Lafayette

The Raleigh City Council voted unanimously today to grant an extension to Greg Hatem for the Lafayette. Hatem has not met deadlines required for the project. City Manager Russell Allen stated before the Council that Hatem does not have financing and does not know when he can get financing, “We would be best served if we put out and RFP.“ A request for proposal would solicit bids from other developers, and Greg Hatem (Empire Properties) would be eligible to reapply to buy the land from the city to develop a mixed use hotel.

Roger Koopman stated that he hoped the Council could give Empire another extension and that, “This is a developer who has done a lot for the City of Raleigh.“ Allen replied that the City has “heard interest for other developers,“ and that Hatem has not produced evidence that he could secure funding for the project. Both Mary Ann Baldwin and Roger Koopman had spoken with Mr. Hatem this week and relayed information from Mr. Hatem that he is having credible conversations with lenders and tenants.

Mayor Meeker spoke in Mr. Hatem’s defense in saying that “there is no developer who has done as much for downtown.“

The Council voted unanimously that on the motion that the City give an extension for the project until November 1st, the cost of the road widening be split with the city, and that this would be the last extension given for the project.

Judging from conversation amongst the council members, it appears that the city would rather have Hatem build a project, in one form or another, and perhaps be open to scaling it down a bit, than have a different developer come in and build something as large as the projected 22 story building. In an interview outside the council chambers, Hatem stated that he thinks he can get the project built.


rendering courtesy of Empire Properties

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  • RaleighRob07/01 04:53 PM

    Unanimous?  He must’ve made a really good case.

    That, and of course, it’d be just plain hypocritical for them not to do so, what with all the extensions they’ve given the Reynolds’ on their project.

  • brian_M07/01 05:42 PM

    I’m glad to see there are people on the council with the attitude of “look at what this guy has done for downtown”, because he has solid results, and downtown is all the better for it. If he’s having trouble getting something built, then what makes anybody think someone else is going to be able to do it?

    Sounds like the city manager has some sort of ax to grind.

  • Steve W07/01 06:11 PM

    I don’t think the city manager has any axes to grind. I am pretty sure he treated Greg Hatem exactly the same way he would treat any other developer.  Greg missed the deadline, and there were other developers that asked to have the opportunity to bid.  Greg was given the extension because he has done a lot for downtown, and fortunately our current City Council is very pro-downtown. But it would not appropriate for the city manager to make exceptions based on politics.

  • Rafe07/01 07:15 PM

    I think it’s appropriate for the city manager to enforce the rules as written and leave the exceptions to the elected politicians.

  • Jeff07/02 02:58 PM

    Am I the only one who hears “he’s done a lot for downtown” and thinks they’re just playing favorites?

    I fail to see much difference between this and the plaza land. The difference is, they want something done with the plaza NOW, and this spot is simply a lower priority.

    I would welcome more consistency in dealing with development, zoning and the entire land use issue.

  • Al07/02 03:23 PM

    I like the way Meeker comments on Hatem. Meeker’s son worked for Empire Properties until he recently struck out on his own, buying up buildings downtown at a very young age. I think the same rules should apply to everyone.

  • Steve W07/02 04:44 PM

    There are exceptions to every rule. Right now Greg Hatem is the exception to most developers, who are making big bucks building strip malls that we’ll have to tear down in 15 years.  Greg Hatem is taking a risk to make downtown better that other developers aren’t willing to take, so I’ll give him a free pass this time.

  • HelenTart07/05 10:12 PM

    It’s not playing favorites to have confidence in someone who rescues a historic chapel from the landfill with little notice. Then has the imagination, insight, and resources, to move it and turn it into a building that will continue to serve a useful purpose in the community…. Not to mention a wonderful place for him to have his wedding.

  • Steve Simpson07/08 05:12 PM

    Hatem is in this for the money.  He plays politics just like the rest of them.  Meeker is standing up for Hatem because Hatem employed Meeker’s son, etc.  Employing Meeker’s son was a smart move by Hatem that is now paying it’s dividends.

    The city should certainly allow others to bid.  Hatem is all about himself. Hatem has smoozed the people in power, that’s his game.  I’ve seen him in action. He is all about himself.

    Hatem has done much more for himself than for you.  I promise you that.

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